Spread Decrease I brought this up before, so I am apologize if this annoys anyone but I have a weird notion that I’d like to bring forward. I have being paying close attention to the spread in SP between the Nasdaq and TSX over the last while. I have seen the spread constantly be around 40cents, then reduced to 30 and then below 20cents today!
I asked on the board, awhile back, what this means? The answers I received seemed all to point at the currency exchange rate. That was around $14/share, we appreciated since then so that should correspond to a larger spread. Not the case.
So I am developing a little theory, please review and correct me of my possible failed conclusions. The Nasdaq seems to have an increased demand or, opposite, the TSX has decreased demand. I think it is a case of the former. TSX’s short position is much less than that of the Nasdaq, so I am figuring that the shorts are starting to cover. This would result in an asymmetrical relationship in terms of SP because a factor exists on the NASDAQ that is not of the same ratio on the TSX. This is my possible rational in terms of the BBRY’s and BB’s spread decreasing.
Peer Review Requested!
Phares>IMO